Helen of Troy reported a solid start for its first quarter 2018, ended May 31, 2017, with its housewares segment driving sales growth.
The company posted a consolidated net sales revenue increase of 3.4% to $359.6 million compared to $347.9 million, reflecting an increase in core business net sales revenue of 2.2% and growth from acquisitions of 1.8%. Net income was $5.9 million, or $0.22 per diluted share, compared to $19 million, or $0.68 per diluted share.
According to the company, its housewares segment led the quarter with a 16.3% increase in sales driven by a 9.7% increase in core business net sales revenue and a 7.3% contribution from acquisitions. The core business increase reflects growth for both Hydro Flask and Oxo brands, with strong online channel sales, growth in bath, infant and kitchen organization categories and expanded international distribution, partially offset by lower promotional programs in the club channel and a reduction in the kitchen electrics product line offerings, the company said.
In the health and home segment, core business net sales increased 3.4%, reflecting incremental distribution and shelf space gains with existing customers, as well as growth in international sales. Growth was partially offset by lower sales in certain categories due to unseasonal weather and the unfavorable impact of net foreign currency fluctuations.
In beauty, core business net sales decreased 1.4%, primarily reflecting declines in the personal care category due to competitive conditions partially offset by solid growth in professional appliance sales, particularly in the online channel.
“Core business net sales for our leadership brands increased over 8% in the quarter, driven by incremental growth investments, successful new product introductions, online channel growth of over 30%, incremental distribution and growth in international sales,” said Julien Mininberg, CEO, Helen of Troy. “We are pleased with our profit progress for the quarter and believe we remain on track to achieve our full year outlook.”